Xin Hwa Holdings Berhad (KLSE:XINHWA) entered into a conditional share sale agreement to acquire a 79% stake in Micron Metal Engineering Sdn Bhd from Hoon Eel An, Chia Ming How and See Kai Mun for MYR 19.8 million on May 10, 2022. 355, 500 shares will be acquired and the consideration will be satisfied via a combination of cash payment of MYR 16.75 million and issuance of 10,507,881 new ordinary shares. The cash consideration portion shall be fully financed via internally generated funds. For the financial year ending December 31, 2021, Micron recorded revenue of MYR 19 million, net income of MYR 2.2 million and net assets of MYR 16.4 million. The transaction is conditional upon listing of new shares on Bursa Securities, due diligence, Micron having obtained the manufacturing licence issued by the Malaysian Industrial Development Authority, approval from Bursa Securities and approval of shareholders of Xin Hwa Holdings. The transaction has been approved by Bursa Securities on June 9, 2022. The transaction has been approved by the Board of Xin Hwa Holdings Berhad and the Board is of the opinion that the acquisition is in the best interests of the Xin Hwa Holdings and the terms and conditions of the agreement is fair and reasonable. As of July 26, 2022 all conditions were fulfilled.The acquisition is expected to be completed in the third quarter of 2022. The acquisition will not have any effect on the issued share capital, earnings and EPS, NA and gearing and substantial shareholders' shareholdings of Xin Hwa Holdings Berhad. UOB Kay Hian Securities (M) Sdn Bhd. acted as financial advisor for Xin Hwa Holdings Berhad and Wrong Tak Mun of Crowe Malaysia PLT acted as auditor for Micron Metal in the transaction.

Xin Hwa Holdings Berhad (KLSE:XINHWA) completed the acquisition of Micron Metal Engineering Sdn Bhd from Hoon Eel An, Chia Ming How and See Kai Mun on July 26, 2022. Balance purchase consideration (comprising balance cash payment of MYR 14.25 million and issuance and allotment of 10.507881 million Consideration Shares) has been fully effected and vested in favour of the Vendors.